Retailers include entities that sell merchandise. In some examples, a retailer is a business that retails general merchandise to consumers. Furthermore, in some examples, a retailer is a business that wholesales merchandise to other businesses.
A retailer may have many stores. Each of the stores is a physical facility at which the retailer sells merchandise. For various reasons, the retailer stocks different merchandise in different ones of its stores. For example, the retailer stocks more winter clothing in northern stores than in southern stores. In another example, the retailer stocks different types of merchandise in different stores based on the demographics of people living near the stores.
If the retailer has many stores, the retailer may group its stores into clusters. Each store in a cluster may stock a similar assortment of merchandise. Stores in different clusters may stock different assortments of merchandise. Grouping stores into clusters may help the retailer manage costs associated with stocking different assortments of merchandise at different stores, while at the same time improving sales by targeting particular assortments of merchandise to customers of stores belonging to the same cluster.